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ARTICLE · 20 JULY 2015

EU Court: Standard Essential Patent Owners May Be Abusing Dominance

Patterson Belknap Webb & Tyler LLP
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ZTE offers products that use LTE technology. Huawei and ZTE were unable to reach a licensing agreement, however, and Huawei sought an injunction against ZTE before the Düsseldorf Regional Court in Germany.

European UnionAntitrust/Competition Law
Melissa Ginsberg
Melissa Ginsberg
Deirdre McEvoy
Deirdre McEvoy

On July 16, the European Court of Justice issued a decision stating that standard essential patent ("SEP") owners that seek injunctions against companies willing to license intellectual property on fair and reasonable terms may be illegally abusing their dominance. You can read the full opinion here.

The dispute between Huawei Technologies Co. Ltd. ("Huawei") and ZTE Corp. ("ZTE") arises from Huawei's patent on Long Term Evolution ("LTE"), a technology that is used in mobile phones and was developed by the European Telecommunications Standards Institute ("ETSI"). Complying with LTE technology is essential for mobile phone manufacturers. Huawei is a member of ETSI, and made a commitment to ETSI to grant licenses to third parties on fair, reasonable, and non-discriminatory ("FRAND") terms.

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